Multiple Choice Questions (MCQ) on Supply chain management

Which of the following is true for supply chain management?

a. The physical material moves in the direction of the end of chain
b. Flow of cash backwards through the chain
c. Exchange of information moves in both the direction
d. All of the above
(Ans:d)

The sequence of a typical manufacturing supply chain is

a. StorageSuppliermanufacturingstoragedistributorretailercustomer
b. SupplierStorage-manufacturingstoragedistributorretailercustomer
c. SupplierStorage-manufacturing distributorstorageretailercustomer
d. SupplierStorage-manufacturingstorage retailerdistributorcustomer
(Ans:b)

The purpose of supply chain management is

a. provide customer satisfaction
b. improve quality of a product
c. integrating supply and demand management
d. increase production
(Ans:c)

Logistics is the part of a supply chain involved with the forward and reverse flow of
a. goods
b. services
c. cash
d. all of the above
(Ans:d)

Due to small change in customer demands, inventory oscillations become

progressively larger looking through the supply chain. This is known as
a. Bullwhip effect
b. Netchain analysis
c. Reverse logistics
d. Reverse supply chain
(Ans:a)

VMI stands for

a. Vendor material inventory
b. Vendor managed inventory
c. Variable material inventory
d. Valuable material inventory
(Ans:b)

The major decision areas in supply chain management are

a. location, production, distribution, inventory
b. planning, production, distribution, inventory
c. location, production, scheduling, inventory
d. location, production, distribution, marketing
(Ans:a)

Distribution requirement planning is a system for

a. Inventory management
b. Distribution planning
c. Both a and b
d. None of the above
(Ans:c)

Reverse logistics is required because

a. Goods are defective
b. Goods are unsold
c. The customers simply change their minds
d. All of the above
(Ans:d)

3-PL stands for

a. Three points logistics
b. Third party logistics
c. Three points location
d. None of the above
(Ans:b)

Single-sourcing has a number

of advantages. Which of the
following is NOT an advantage
of single sourcing?

Your Answer: Wide sources of

knowledge and
expertise to
tap.

Yes, that's correct.

2. Multiple-sourcing has a number
of advantages. Which of the
following is NOT an advantage?

Your Answer: A wider

source of
knowledge
and expertise
is available.
Correct Answer: More scale
economies.

No, that's not correct.

3. If the operation has minimum

inventory and low-cost suppliers
and the market requirements are
predictable with few changes,
that is:

Your Answer: Match

Yes, that's correct.

4. If the operation has deployed

inventory and flexible suppliers
and the market requirements are
for short lead time and high
margins, that is:

Your Answer: Mismatch

Correct Answer: Match

No, that's not correct.

5. If the operation is low cost and

minimum inventory and the
 market requirements are for
stable prices and low lead time,
that is:

Your Answer: Match

Yes, that's correct.

6. Greater dependency encouraging

more commitment and effort is
an advantage of:

Your Answer: Single sourcing

Yes, that's correct.

7. Can switch sources in case of

supply failure is an advantage of:

Your Answer: Multi-sourcing

Yes, that's correct.

8. Higher confidentiality is an
advantage of:

Your Answer: Multi-sourcing

Correct Answer: Single
sourcing

No, that's not correct.

9. Potentially better quality because

more SQA possibilities is an
advantage of:

Your Answer: Single sourcing

 Yes, that's correct.

10. Professor Lamming defines lean

supply as supplying goods in the
smallest possible quantities in
order to increase flexibility.

Your Answer: False

Yes, that's correct.

11. EPOS systems used by retailers,

stands for electronic point of
sale.

Your Answer: True

Yes, that's correct.

12. Vendor-managed inventory (VMI)

is a way to allow an upstream
supplier to manage the
inventories of its downstream
customer.

Your Answer: False

Correct Answer: True

No, that's not correct.

13. All the operations that are linked

together to provide goods and
services to the end customer
arecalled:

Your Answer: The

Distribution
 Chain
Correct Answer: The Supply
Network

14. The emphasis on understanding

the end customer in a supply
chain has led to some authorities
objecting the term supply chain.
Instead they argue they should
be referred to as:

Your Answer: Demand chains

Yes, that's correct.

15. Authorities who object to the

term supply chain argue that
the concept implies a pull
mentality.

Your Answer: True

Correct Answer: False

1. Which of the following is NOT a

disadvantage of single-sourcing?

Your Answer: (blank)

2. Kerietsu is a Japanese word for global sourcing.

Your Answer: True

Correct Answer: False

No, that's not correct.

3. A linkage of operations that provide goods and

services through to the end customer is called:
 Your Answer: The Logistics Network
Correct Answer: The Supply Chain

4. If total sales for a company are 10,000,000 the cost

of purchase goods and services is 7,000,000
salaries are 2,000,000 and overheads are
500,000, profits can be doubled by:

Your Answer: Decreasing salaries by 25%

Correct Answer: All of the above

5. Which of the following relates to the short-term

ability to supply?

Your Answer: Dependability of supply

6. Which of the following is considered an impact of e-

procurement?

Your Answer: It opens up the marketplace to

increased competition, but limits
the ability to manage suppliers
Correct Answer: It drives efficiency, opens up the
market to competition, and
improves the ability to manage
suppliers

7. The concept of materials management originated

from purchasing functions that understood the
importance of integrating materials flow and its
supporting functions.

Your Answer: True

8. The volume and value of purchases of goods or

services typically increase as organisations
concentrate on their core tasks

Your Answer: False

Correct Answer: True
9. Logistics' covers a smaller proportion of the supply
chain than Physical distribution management'

Your Answer: False

10. The larger the level of material costs as a proportion

of total costs, the greater the effect on profitability of
a reduction in material costs.

Your Answer: False

Correct Answer: True

11. E-Procurement is a generic term used to describe the

use of electronic methods in every stage of the
purchasing process from identification if need
through to payment, and even contract
management.

Your Answer: False

Correct Answer: True

12. In attempting to reduce inventory in the supply chain

as a whole, the supply chain manager must focus
attention on:

Your Answer: End customers

Correct Answer: Bottle neck businesses

No, that's not correct.

13. The idea of identifying waste along the whole supply

chain, especially in the form of unnecessary
inventory, is the basis of what concept?

Your Answer: Effective supply chain

Correct Answer: Lean supply chain

No, that's not correct.

14. What is the well-accepted term for the function that

deals with the operations interface with its supplier
 markets?

Your Answer: Logistics

Correct Answer: Purchasing and supply
management

No, that's not correct.

15. What is the term commonly used to refer to the

extension of physical distribution management?

Your Answer: Downstream supply management

Correct Answer: Logistics

No, that's not correct.

Which of the following is NOT a

disadvantage of single-sourcing?

Your Answer: (blank)

2. Kerietsu is a Japanese word

for global sourcing.

Your Answer: True

Correct Answer: False

No, that's not correct.

3. A linkage of operations that

provide goods and services
through to the end customer
is called:

Your Answer: The

Logistics
Network
Correct Answer: The
Supply
Chain
4. If total sales for a company
are 10,000,000 the cost of
purchase goods and services
is 7,000,000 salaries are
2,000,000 and overheads
are 500,000, profits can be
doubled by:

Your Answer: Decreasin

g salaries
by 25%
Correct All of the
Answer: above

5. Which of the following

relates to the short-term
ability to supply?

Your Dependabilit
Answer: y of supply

6. Which of the following is

considered an impact of e-
procurement?

Your Answer: It opens

up the
marketplac
e to
increased
competitio
n, but
limits the
ability to
manage
suppliers
Correct It drives
Answer: efficiency,
opens up
 the market
to
competitio
n, and
improves
the ability
to manage
suppliers

7. The concept of materials

management originated
from purchasing functions
that understood the
importance of integrating
materials flow and its
supporting functions.

Your Answer: True

8. The volume and value of

purchases of goods or
services typically increase as
organisations concentrate on
their core tasks

Your Answer: False

Correct Answer: True

9. Logistics' covers a smaller

proportion of the supply
chain than Physical
distribution management'

Your Answer: False

10. The larger the level of

material costs as a
proportion of total costs, the
 greater the effect on
profitability of a reduction in
material costs.

Your Answer: False

Correct Answer: True

11. E-Procurement is a generic

term used to describe the
use of electronic methods in
every stage of the
purchasing process from
identification if need through
to payment, and even
contract management.

Your Answer: False

Correct Answer: True

12. In attempting to reduce

inventory in the supply chain
as a whole, the supply chain
manager must focus
attention on:

Your Answer: End

customers
Correct Bottle
Answer: neck
businesse
s

No, that's not correct.

13. The idea of identifying waste

along the whole supply
chain, especially in the form
of unnecessary inventory, is
 the basis of what concept?

Your Answer: Effective

supply
chain
Correct Answer: Lean
supply
chain

No, that's not correct.

14. What is the well-accepted

term for the function that
deals with the operations
interface with its supplier
markets?

Your Answer: Logistics

Correct Purchasing
Answer: and supply
manageme
nt

No, that's not correct.

15. What is the term commonly

used to refer to the
extension of physical
distribution management?

Your Answer: Downstrea

m supply
manageme
nt
Correct Logistics
Answer:

No, that's not correct.

Which of the following is NOT a disadvantage of single-sourcing?

Your Answer: Less easy to develop effective SQA.

Yes,
that's
correct.